Petrol price reaches record Rs112.68 in Pakistan

ISLAMABAD – Despite a reduction in international crude price, the PTI government on Friday approved a substantial increase in the prices of major petroleum products for the month of June because of currency devaluation.

With an increase Rs4.26 per litre, the new price for Petrol will reach Rs112.68/litre by tonight (June 1) while Diesel will be sold for Rs126.82/litre following a hike of Rs4.50/litre.

Kerosene Oil saw an increase of Rs1.69 and will be put on sale for Rs98.46/litre, whereas the Light Diesel will be available for Rs88.62/litre after an increase of Rs1.68/litre.

The government has already increased general sales tax on all petroleum products to standard rate of 17pc, except 13pc on petrol and diesel.

These are the country’s highest ever petroleum prices with international crude market at $67 per barrel — almost half of the 2008 highest record of $147 when retail prices stood below Rs80 per litre.

The price hike comes a day after the Oil and Gas Regulatory Authority (Ogra) moved a summary to the government containing calculations on petroleum prices on the basis of existing rates of general sales tax and petroleum levy.

On the other hand, crude price has dropped by 7 per cent in the Arabian Gulf over the last month from $72 on April 28 to $67 per barrel on May 29 but the currency devaluation caused the major negative impact.